Bond investors could raise U.S. borrowing costs, challenging Trump's trade war plans.

Bond investors, known as "bond vigilantes," could potentially thwart President-elect Donald Trump's plans for a trade war with countries like China, Mexico, and Canada. These investors, by selling U.S. bonds, could increase the government's borrowing costs, pressuring Trump to reconsider his policies. While this scenario is possible, the strength of the dollar and other checks like lawmakers may limit the influence of these investors.

November 29, 2024
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